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Trade News Quarterly October 2015

ACE Update – Parker & Company is now filing all customers’ entries in ACE (7501 data). We are currently testing FDA filings in ACE and will start migrating our Customers requiring Entries with FDA to ACE. The November deadline for complete filing of all entries in ACE has been postponed till end of February 2016

U.S. Customs and Border Protection is planning to add entry type 52 (government – dutiable (other than the Defense Contract Management Command)) to its test of cargo release in the Automated Commercial Environment, which already covers entry types 01, 03 and 11. As a result, beginning on or about Nov. 18, importers and customs brokers participating in ACE will be able to electronically file a simplified entry for the release of cargo for entry type 52 for goods arriving at any port of entry by truck, rail, vessel and air as well as by mail, pedestrian and passenger (hand-carried)

Multiple Holds. Effective Oct. 15 ACE is able to process multiple holds on either a manifest or entry in both the certification and production environments. Holds may be placed by CBP or select agencies with direct hold authority (the Food and Drug Administration and the Fish and Wildlife Service) or through requests from other agencies. These holds can be placed and/or removed independently from each other. All holds must be resolved prior to CBP issuing a 1C (“Customs released”) message. Cargo Release/Entry Summary. ACE will accept entry and entry summary types 23 (temporary importation bond) and 06 (consumption – foreign-trade zone) in the certification and production environments effective Oct. 17. ACE FTZ entries allow for submitting active and inactive HTS codes, filing ACE entry summary certified for ACE cargo release, filing weekly FTZ estimates (not allowed if certified from summary), and designation of privileged foreign status.

CBP notes that entry types 06 and 23 are currently unavailable for HTS numbers with quota requirements.

Expedited Release Programs. ACE capabilities to support expedited release programs for truck and rail (BRASS, FAST and Line Release) are scheduled to be deployed to the certification and production environments on Oct. 31. More details will be issued when these capabilities are launched.

New Reports Layout. An updated user interface for reports functionality is scheduled for deployment in November. The updated layout will include a new landing page, a tabular reports structure and revised training resources page. Between November and December the new tabular model will run in parallel with the existing folder structure to allow users time to familiarize themselves with the new layout. CBP notes that upon full transition to the new layout in December approximately 90 percent of legacy public/canned reports will be retired due to infrequent use.

Imaging update – Parker & Company is currently evaluating imaging systems of various venders with a plan to implement imaging in the near future. Included with the system will be the ability of customers to log in via the internet to view and print their own files.

Month-to-Month Changes. Percentage changes in the value of monthly U.S. freight flows by mode of transportation from June to July include the following.

Total

Canada

Mexico

Imports

Exports

Imports

Exports

Imports

Exports

Truck

-9.5

-5.7

+16.1

-10.5

-6.2

no change

Rail

-16.2

-7.4

-12.8

-16.9

-20.2

+2.9

Vessel

-16.8

+19.2

-29.2

+15.2

-7.1

+17.7

Air

+5.5

-1.0

+7.7

-4.6

+1.7

+5.2

Pipeline

+16.9

-0.1

+16.9

-5.6

+27.3

+7.1

Broker-Known Importer Program Offers another Option to Expedite Shipments

U.S. Customs and Border Protection has announced the implementation of the Broker-Known Importer Program, which offers an additional avenue to enhance the sharing of trade intelligence between importers and brokers and between the trade community and CBP. With a limited number of importers expected to avail themselves of the Importer Self-Assessment and Trusted Trader programs, BKIP offers a way for CBP to use the importer-broker relationship to further identify reputable importers and thus narrow the field of actors on which it focuses its enforcement resources. However, it is unclear at this point exactly how CBP plans to use the BKIP and whether many brokers will participate.

Under this voluntary program, licensed customs brokers work with their importer clients to review in greater depth their import programs in the context of import regulations. A review should cover issues such as antidumping and countervailing duties, intellectual property rights, classification and valuation, free trade agreements and preference programs, country of origin, marking and supply chain security as well as documentation and information requirements for customs clearance, recordkeeping and drawback. Brokers may not rely on reviews conducted by other brokers and must redo their reviews periodically. Reviews are thus expected to result in increased compliance understanding on the part of importers as well as improved entry accuracy.

The broker uses an electronic indicator on the entry (functionality that has already been deployed in the Automated Commercial Environment) to signal to CBP that the importer is known to the broker and that the review has taken place. This indicator will factor into CBP’s cargo risk segmentation, which may improve the importer’s risk profile in CBP’s targeting system and thus help expedite shipments at the time of arrival. Additional benefits under this program may also be extended to importers in the future.

CTPAT news and bulletins –

Parker & Company encourages all customers, transport companies and warehouses our customers and transport partners to use the seven-point inspection process for empty containers prior to the loading the cargo, as well as the seventeen-point inspection process for all trailers/tractors, and that this should be followed. Here is a link to the page that has both procedures to be down loaded. The procedures are found in the CTPAT resources library at:

Trailer and container security; All customers and transport companies are reminded:all loaded U.S.-bound containers and trailers must have a ISO 17712 high-security seal affixed.

U.S., Mexico announce cargo pre-inspection pilot program – MEXICO CITY, (Yahoo News) — The United States and Mexico on Thursday launched a pilot cargo pre-inspection program that aims to facilitate trade between the two nations.

Under the program, cargo will be inspected just once in the exporting country by customs officials from both nations. Officials say it has the potential to ease shipping congestion by reducing wait times up to 80 percent and lower storage costs and other expenses.

U.S. Homeland Security Secretary Jeh Johnson said at a news conference in Mexico City that the program “represents a remarkable evolution” of the bilateral relationship.

“The pre-inspection pilot program which this memorandum will enshrine opens the door for a 21st century approach to trade facilitation between our two countries,” Johnson said.

Mexican Treasury Secretary Luis Videgaray said the program began Thursday at the airport in Laredo, Texas, with the first inspections carried out by officials from both sides of the border, including armed Mexican agents.

In the coming days and weeks the program will be expanded to two facilities in Mexico: Mesa de Otay in Baja California, near San Diego, and San Jeronimo, which is in Chihuahua State near the border cities of El Paso and Ciudad Juarez.

“In essence it means that instead of having two bureaucratic hurdles … now, thanks to joint cooperation and trust, we are going to have just one inspection,” Videgaray said.

“What are we aiming for?” he added. “To generalize this way of working, based on efficiency and trust to achieve security and competitiveness.”

Johnson said more than $1.45 billion in trade moves between Mexico and the U.S. each day, totaling over $530 billion a year.

In the last two decades, he said, Mexican imports of U.S. goods have risen from $41.6 billion to $240 billion. Over the same period,

U.S. imports of Mexican goods went from $40 billion to $295 billion.

L.A./Long Beach terminals to require cargo pickup reservations

In an effort to decrease cargo congestion at the ports of Los Angeles and Long Beach, 10 terminal operators plan to require truckers to make reservations to pick up shipping containers from the docks, according to Pier Pass Inc., the nonprofit organization that operates terminal gates at the ports.

The terminals have adopted an appointment system action plan and committed to a set of common requirements. The five terminals that currently operate appointment systems have agreed to adopt these requirements, and five more terminals plan to introduce appointment systems in 2016 that will follow the same guidelines, the statement said.

For truck drivers, the appointment systems are designed to add predictability to the supply chain. The variable queue lengths at different times of the day will be flattened out, which is expected to reduce the longer truck turn times.

Parker & Company offers Mexican West and East Coast container freight services – Parker and Company Monterrey office handles all our Mexican clients Container freight services we offer Competitive Ocean rates via Manzanillo, Lazaro Cardenas, and also East Coast Port of Altamira. We provide trucking services from Monterrey KCS rail ramp and Altamira port. We also have Mexican broker clearance services. Our service is provided through our large international network of WNA agents providing hands on service. Please contact Ben Rodriguez in Monterrey officebenparker@prodigy.net.mx

Foot notes – Articles in this newsletter are taken from variety of sources. Including Journal of Commerce, Sandler and Travis newsletter, and NCBFAA Monday morning briefing. Other articles are personally written by the newsletter publisher Frank Parker.

The publisher has taken all reasonable steps to verify the accuracy of the content of this site. However, Parker & Company shall not be responsible for errors or omissions. Any advice in this newsletter is general and we recommend you contact Parker & Company licensed brokers or your customs council with specifics on your import or export transactions.